TRON's Rise to Stablecoin Supremacy: Why it's Set to Lead the Pack | March 2023

I posted this on the TRONIX Reddit put wanted to also post this here so more Tronics and Hackathon participants could see it as well.

(If anyone would like to be an approved member on the TRON community reddit send me a DM. This will allow you to post without the needed Karma requirement. The Karma requirement is there to make sure bots don’t go crazy posting garbage. :laughing:)

The Start

I want to preface this by saying this is purely speculation mixed in with things happening.

Let's Begin.....

We have seen the recent USDC depeg and complications with banks like SVB, Silver bank and Credit Suisse across the world. With traditional banks not having a 1:1 reserve and instead running on a fractional reserve system has led many of the banks to become bankrupt. The government then in turn bailing them out. This is a failed system

r/Tronix - TRON's Rise to Stablecoin Supremacy: Why it's Set to Lead the Pack

CZ Binance Explaining Fractional Reserves Don’t Work.

Why Do We Need Stablecoins and Traditional Banks?

Stablecoins have been pivotal for increasing adoption within crypto. In this current time of transition from web2 to web3 where crypto infrastructure is not widespread and users/businesses still heavily rely on fiat, we can see stablecoin has brought in a considerable amount of liquidity into crypto.

Cryptocurrencies have a glaring issue of volatility and stablecoins attempt to bring stability to the blockchain which is essential for businesses.

You might have businesses accept payments in BTC, ETH or TRX but they are 100% switching those cryptocurrencies in the back end to a more stable asset. This is why a stable asset is essential.

Our current stablecoins that are dominant in the market are fiat-backed stablecoins. These require a bank to store the fiat in order to mint. Say a business gives the bank $100 USD then the issuer credits them 100 USDC. They can also redeem or reverse the process. This provides an easy on-off ramp for big business.

The issue arises when traditional banks, still using the fractional reserve system, go bankrupt and funds are not accessible. Then users start to sell USDC below the $1.00 value on the market because they can’t redeem to fiat causing a depeg event.

In order to create a fiat-backed stablecoin it is a necessary evil to use a bank.

So... what?

Recently, BUSD has been called out on its stability and its issuer Paxos has stopped minting BUSD. Binance and CZ has turned to replacing BUSD with TUSD.

r/Tronix - TRON's Rise to Stablecoin Supremacy: Why it's Set to Lead the Pack

Binance Minting TUSD on TRON

r/Tronix - TRON's Rise to Stablecoin Supremacy: Why it's Set to Lead the Pack

Binance swapping BUSD to TUSD/USDT

r/Tronix - TRON's Rise to Stablecoin Supremacy: Why it's Set to Lead the Pack

0 Free Trading on TUSD

This is a big shift in focus from one of the biggest players in Crypto from BUSD to TUSD.


TUSD claims that it always has a 1:1 reserve. It works with several traditional banks and has a live reserve tracker on its website. It also issues many different stables such as GBP and the Chinese Yuan.

r/Tronix - TRON's Rise to Stablecoin Supremacy: Why it's Set to Lead the Pack

Tracking of reserves on their website

What Does This Have To Do With TRON?

Not only did Binance mint their newly TUSD on TRON in one of the images above but Justin Sun is related to TRUE.

In fact, TUSD gained legal tender status from Dominica along with other TRON based cryptocurrencies.

This opens up the legal framework and adoption of TUSD.

r/Tronix - TRON's Rise to Stablecoin Supremacy: Why it's Set to Lead the Pack

TUSD is Legal Tender in Dominica

Quite recently Justin Sun also expressed interest in creating a “Crypto Friendly” bank and Dominica is known for its Financial/Tourism industries. It would seem the perfect place to work with the Dominica bank to issue a stablecoin and a win-win for TRON, Dominica, and Crypto adoption.

r/Tronix - TRON's Rise to Stablecoin Supremacy: Why it's Set to Lead the Pack

Justin Sun’s interest in a “Crypto-Friendly Bank”

So How Will This Affect $TRX?

TRON currently generates a ton of revenue mainly from its cheap/fast stablecoin transfers. It is the #1 chain for USDT holding even more than Ethereum. It is a powerhouse in currency settlement and burns on average $1 million USD worth of TRX per day, mainly coming from USDT transaction fees.

With more adoption of TUSD, especially from a big player like Binance, we could see more usage of the TRON blockchain to transfer it thus increasing the burn effect of $TRX and price appreciation. TRX is currently at a 10% deflationary rate.

r/Tronix - TRON's Rise to Stablecoin Supremacy: Why it's Set to Lead the Pack

TRX Burning Per Day

On The Horizon.....

While TRON may lack in terms of Dapps (Currently have ongoing TRON Hackathons to help this) it is a powerhouse in the original vision of crypto which is, international currency settlement.

While you might think so they got 2 stablecoins USDT and TUSD… just over the horizon we can see both Tether and True releasing their own OffShore Chinese Yuan which happened earlier this year on TRON.

Offshore Yuan is mainly used to connect businesses in China to those outside of it. This is centered around Hong Kong which is why traditional finance called it CNH (H for Hong Kong) and CNY (China Yuan).

r/Tronix - TRON's Rise to Stablecoin Supremacy: Why it's Set to Lead the Pack

Tether’s Chinese Yuan on TRON

This market solely revolves around if Huobi (Crypto Exchange for which Justin is an advisor to) can acquire its licenses in Hong Kong, which they have applied for already.

This would bring even more TRON usage on a massive level.

With all these stables and a head start with country adoption, TRON could very well be the “settlement” blockchain.


Perfectly explained. Thank you Sir.
Greater things happening.
Daily active users keep increasing and this surely positively affect daily burns.

I can see we are in the preparation stage.
All the measures Justin and the team are putting in place will soon pay off.

Binance minting TUSD on tron and also swapping some Busd is huge, they also have their own chain so this means tron has something to offer.

With the Dapps, that’s where I have some small issue with. With the current ones we have we lack active users or let me say we have but very few, do you have any measures put in place to make these dapps more attractive to the daily active users of tron blockchain we currently have?


Active daily users never stops increasing, Thank you for explaining


From all what Tron blockchain is building is a true example of a Positive Domino Effect which when triggered eventually will see $Trx skyrocketing to a level no crypto asset has ever achieved.

  1. Huobi-Master card partnership
  2. License Acquisition in Hongkong
  3. Stablecoin Hub
  4. $trx increased burning rate
  5. Increased daily active users etc

Are all indications showing that, things are perfectly being aligned for success.

The question is, how well are we preparing the entire crypto community for this positive domino effect.

Are we marketing tron enough?
Are we educating the masses enough on the tron blockchain?
Are we showing how people can position themselves to harness this power about to erupt the cryptospace.


And if we are not doing enough, what then can be done to improve on this shortfalls.
How can we rebrand tron to be appealing to the general crypto space?

I love where tron is heading, because i know we are gradually heading for success.

Peace be unto all Tron Ambassadors and the rest of the crypto community as a whole. :v:


Certainly! Tron has several positive factors that have contributed to its rise as a stablecoin leader. One of the main advantages of Tron is its fast transaction processing times and low fees. This makes it an attractive option for users who want to transfer funds quickly and cost-effectively.

In addition to its technical capabilities, Tron has also built a strong ecosystem of developers, entrepreneurs, and investors who are committed to its growth and success. This community has helped to foster innovation and creativity within the Tron platform, leading to the development of new and exciting use cases for stablecoins.

Furthermore, Tron’s strengths in technology, community, and partnerships make it a compelling choice for those seeking to use stablecoins for a variety of purposes. As Tron continues to grow and evolve, it is likely to remain a major player in the stablecoin market for years to come.

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